Natural Gas Price Outlook – Natural Gas Continues to Threaten $5

Natural Gas Technical Analysis

You can see that we are trading the January futures contract, and we are testing the $5 level. That’s not a huge surprise because, quite frankly, this is one of the coldest times of year once you get into January.

Furthermore, we are getting an Arctic blast of cold air in the United States this weekend. So that will certainly have a major influence on where we go next with natural gas as heating demand climbs. That being said, it’ll be interesting to see what happens once that goes away. Maybe a short-term pullback opens up the possibility of testing $4.60.

I think at this point, it’s clear, and I wouldn’t do it this time of year anyway, that you cannot short the natural gas market, but it is very difficult to try to chase it all the way up here. I think you are looking for value, and when you see it, you have to take advantage of it. I have no interest whatsoever in trying to short this market, as I said.

Key Breakout Levels

And if we can break above the $5 level, what’s interesting is that there isn’t a lot to keep it from going all the way to $6.50 or maybe even $7. With that being said, I remain positive, I remain bullish, but I want to find value. Hopefully, I can get it, or I’ll have to see a breakout above the $5 level, maybe a pullback and retest, and continuation to get involved in what has been a massive bullish market.

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